The Rundown - Capital One to Acquire Discover, Intuitive Machines Embarks on Lunar Mission

Episode Date: February 20, 2024

Stock market update for February 20, 2024. The content of the podcast is for general and informational purposes only. All views presented in this show reflect the opinions of the guest and the host. You should not take a mention of any asset, be it cryptocurrency or a publicly traded security as a recommendation to buy, sell or hold that cryptocurrency or security. Guests and hosts are not affiliated with or endorsed by Public Holdings or its subsidiaries. You should make your own financial and investment decisions or consult respective professionals. Full disclosures are in the channel description. Learn more at Public.com/disclosures. Past performance is not a guarantee of future results. There is a possibility of loss with any investment. Historical or hypothetical performance results, if mentioned, are presented for illustrative purposes only. Do not infer or assume that any securities, sectors or markets described in the videos were or will be profitable. Any statements of future expectations and other forward-looking statements are strictly based on the current views, opinion, or assumptions of the person presenting them, and should not be taken as an indicator of performance nor should be relied upon as an investment advice.The content of the podcast is for general and informational purposes only. All views presented in this show reflect the opinions of the guest and the host. You should not take a mention of any asset, be it cryptocurrency or a publicly traded security as a recommendation to buy, sell or hold that cryptocurrency or security. Guests and hosts are not affiliated with or endorsed by Public Holdings or its subsidiaries. You should make your own financial and investment decisions or consult respective professionals. Full disclosures are in the channel description. Learn more at Public.com/disclosures. Past performance is not a guarantee of future results. There is a possibility of loss with any investment. Historical or hypothetical performance results, if mentioned, are presented for illustrative purposes only. Do not infer or assume that any securities, sectors or markets described in the videos were or will be profitable. Any statements of future expectations and other forward-looking statements are strictly based on the current views, opinion, or assumptions of the person presenting them, and should not be taken as an indicator of performance nor should be relied upon as an investment advice.

Welcome to the rundown, your daily market update in under five minutes. My name is Zadadmani, and today is Tuesday, February 20th. In today's episode, we talk about a mega merger in the credit card industry. Capital One is buying Discover, and this deal is going to have huge ramifications in the credit card industry. We also recap earnings from Walmart in Home Depot, and then we're going to end the show with a fun fact about the Magnificent 7 that truly blew my mind. Stick around for that. All right, let's get into it. Well, it's good to be back after the long weekend.

ready to talk markets because we have another action-packed week ahead of us. Let's first do a quick recap of the markets last week. Stocks finished in the red last week. All three major indices were down last week for the first time in five weeks. A big reason for that was the hotter than expected inflation reports. But hey, we can't expect markets to go up forever and they're still up for the year. Things are off to a tough start this week. The Dow, S&P, and NASDAQ are all down at the time of this recording around noon Eastern. We are almost done with earnings season, everybody. But this week might be one of the most important weeks because Nvidia is reporting and a lot of people have been waiting to see Nvidia's numbers. The hype around the stock has never been bigger. The stock is up more than

40% for the year. Invidia's market cap overtook Google and Amazon last week. There's a lot of big expectations around these earnings. So we'll see if Nvidia can deliver. We're going to be recapping those earnings on Thursday show. So make sure you're following along and check back in on Thursday. I mean, you should be listening every day, but especially Thursday. All right, let's run through some headlines. Some major news coming out of the credit card industry. Capital One is buying Discover for $35 billion in a all-stock deal. This would be the biggest merger of the year so far. Capital One is hoping that by buying Discover, they can take on the big boys like Visa and MasterCard. It's a pretty bold move, but I do like it. This deal is expected to close later this year or early

next year if it gets regulatory approval. And that is a big if. All right, let's shift gears and talk about earnings because two of the biggest retailers in the world just reported earnings, Walmart and Home Depot. Let's start with Walmart first. Walmart's Q4 numbers came in better than expected. Walmart's Q4 revenues were up 5.7% to $173 billion, and their Q4 profits were $5.49 billion. Now, the profits are actually down from a year ago, but it is higher than what Wall Street was expecting. And that's all that matters, right? Walmart has also seen their other businesses grow, like their online sales increased by 17% last quarter, and Walmart is also trying to boost their ads business by acquiring the TV maker Vizio. We talked about this

acquisition in last week's episode, so go check that out if you want to learn more. Overall, investors like what they heard and Walmart stock is up more than 3% at the time of this recording around noon eastern. Switching over to Home Depot earnings. Home Depot's earnings were a bit of a mixed back. Their Q4 revenues were down 2.9% to $34.6 billion, but it did come in higher than estimates. Q4 profits were also down to $2.8 billion. But again, higher than what was estimated. See, Home Depot is kind of in a weird spot because they saw massive growth in their business from 2020 to 2022 because everyone was spending a ton of money remodeling their homes. And now that a lot of the remodeling is done, Home Depot is seeing a decrease in sales. And Home Depot does not expect

their business to grow in 2024 much either. They expect their sales to increase by just 1% this year. Wall Street, on the other hand, was looking for a bit more juice, somewhere around the 3% range. Home Depot stock is trading flat at the time of this recording, around noon Eastern. Let's talk about some other stocks making moves today. The two big winners today are companies that we've already talked about. Discover stock is up more than 14% today because of their deal with Capital One, and Vizio stock is up 14% today because of their deal with Walmart. Now, But beyond those two companies, a space company stock today is skyrocketing. The company Intuitive Machines, which has ticker symbol L-U-N-R, is up more than 40% today at the time of this recording around noon eastern, and up more than 90% since last week.

Intuitive machines launched a mission last week to land a lander on the moon. This would be the first moon landing in like 50 years. And things have been going pretty well so far on this mission. The lander has entered lunar orbit, and it's scheduled to land on Thursday. If the landing is successful, it would be the first private company to have a successful landing on the moon. So there's some really cool stuff happening right now. Let's talk about a loser today. That would be SMCI.

This AI stock has been on a bit of a journey over the last week. Last week, the stock popped more than 25% after reporting earnings, mostly off the back of the AI hype. Well, things seem to be cooling off a bit. The stock dropped 20% on Friday of last week and is down another 11% today at the time that's recording around noon Eastern. Just a warning to be careful out there when buying these hype stocks, you know? All right, let's end the show with a fun fact. Today's fun fact is about The Magnificent Seven, and this fun fact blew my mind. According to research by the Deutsche Bank, the combined profits of the Magnificent Seven

is greater than the profits of nearly all publicly traded companies in every country in the world combined. The only exception to that is China and Japan. So, like, if you add up all the profits of any country's publicly traded company, they make less profits than seven companies in the United States. So, like, for example, every publicly traded company in France makes less. less combined profits than the Magnificent Seven. And just as a reminder, the Magnificent Seven refers to Microsoft, Apple, Amazon, Google, meta, Nvidia, and Tesla.

It's just absolutely insane how dominant the Magnificent Seven are right now. All right, guys, that's all I got for you guys this week. Thank you guys so much for listening, and I'll see you guys back here tomorrow. This is Public Live, your real-time resource for news events and trends in the markets. All views presented in this show reflect the opinions of the guests. You should not take any mention of a publicly traded security. as recommendation to buy, sell or hold that security. Public live hosts are not financial advisors and are not affiliated with public holdings

or its subsidiaries. You should make your own financial and investment decisions or consult. Respective professionals. Learn more at public.com slash disclosures. In paid partnership with Zaid Admani, brokerage services for U.S. listed, registered securities are offered by Open to the Public Investing Incorporated, member FINRA and SIPC. see.